The financial troubles of the state-owned Cocoa Processing Company Limited (CPC) have worsened, with the company reporting a loss of $9,568,898 in the first half of 2024. This represents an increase from $9,155,700 during the same period last year, marking a 4.5% rise in losses.
This escalation in losses is largely due to rising operational costs, particularly in selling, distribution, and financial expenses. According to CPC’s 2024 Unaudited Financial Statement, the company’s total revenue for the first half of 2024 fell to $22,198,703, down from $24,184,099 in the first half of 2023, reflecting an 8.2% decrease.
Production levels also experienced a significant decline. The amount of cocoa beans processed dropped to 2,886 metric tonnes from 6,614 metric tonnes in 2023. Similarly, the production of semi-finished products decreased to 2,239 metric tonnes from 5,425 metric tonnes, and confectionery products packed fell to 1,049 metric tonnes from 1,418 metric tonnes.
In response to these challenges, CPC has secured a commitment from COCOBOD to continue supplying cocoa beans to support its operations. COCOBOD has also pledged not to demand repayments that could jeopardize CPC’s operations.
To improve its financial situation and move towards profitability, CPC’s Board of Directors has introduced several strategies, including cost-cutting measures, investments in infrastructure and machinery, and efforts to expand the revenue base.
Additionally, CPC’s management is negotiating with the African Export-Import Bank (Afreximbank) for an $86.7 million loan. This loan aims to cover outstanding debts to a syndicate of banks, support working capital needs, and enhance production capacity through upgrades to property, plant, and equipment. The management expects to finalize the loan agreement by December 2024, with the initial funds anticipated to be disbursed by March 2025.
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